Update on last week's Crude Oil price rise:
Crude oil prices gained many points last week, boosted by several bullish indicators including renewed market optimism about demand and supply disruptions in the Gulf of Mexico.
Thus, on Friday, the barrel of Brent North Sea oil for delivery in October ended the session at 72.70 dollars in London, which represents an increase of 2.29% or 1.63 dollars compared to its previous day's closing.
On the New York market, a barrel of U.S. WTI crude oil for delivery in the same month ended up 1.95% or $1.32 at $68.74.
In total and for these two contracts of reference in the world, we record a rise of more than 10% over the whole week, a performance that we have not seen for more than a year for WTI, that is to say in September 2020, and for more for Brent as of June 2020.
What are the explanations and causes for this return to the upside?
Several indicators have indeed come to support the price of black gold last week with in particular the storm Ida, the fire of an oil platform in the Gulf of Mexico, the recovery of the demand in the United States and in Asia which exceeded the expectations of the analysts.
Analysts explained that the turnaround in crude oil prices this week echoed the very sharp decline in prices the week before.
As for the fire of the oil platform in the Gulf of Mexico which took place Sunday, it forced the group Pemex to stop the exploitation of 125 then. The boss of Pemex indicated a return to normal around August 30 but the production in the Gulf of Mexico could also undergo the ninth climatic event of the season with the storm Ida.
Indeed, on the U.S. side of the Gulf, oil companies have already begun evacuating their platforms and suspending production because of the storm, which will become a hurricane on Sunday.
However, the main event to watch this week will be Wednesday's OPEC+ meeting which will bring together members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies. Thus, the organization is expected to evaluate its current policy, which was voted on July 18 and which consists of gradually increasing its production after the sharp reduction that was put in place in 2001.the organization is expected to evaluate its current policy, which was voted on July 18 and which consists of gradually increasing its production after the sharp reduction that was put in place last year to counteract the fall in prices caused by the pandemic.